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New Member
posted Jun 1, 2019 2:31:05 PM

I changed business from sole proprietorship to llc in the middle of the tax year, how do I file my taxes?

I am using the same equipment, vehicle and inventory for the new business.

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11 Replies
Expert Alumni
Jun 1, 2019 2:31:05 PM

If you changed your sole proprietorship to a single-member LLC then there is no change. You still report the LLC's income and expenses on the personal tax return (Schedule C) as your single-member LLC is a disregarded entity for tax purposes.

If your LLC is not a single-member LLC, please comment back for further help.

Level 15
Jun 1, 2019 2:31:06 PM

All you do is add the EIN to the Sch C.

New Member
Jun 1, 2019 2:31:07 PM

Thank you, TurboTaxMinhT and Critter#2!

New Member
Jun 1, 2019 2:31:08 PM

Can you just use one Schedule C if you also changed the business to a new name?

Level 15
Jun 1, 2019 2:31:09 PM

Yes.

New Member
Jun 1, 2019 2:31:10 PM

Thanks!

Returning Member
Jul 25, 2019 2:23:56 PM

What would be the difference if you were from sole proprietorship to a 2 member LLC, and the two members are not spouses.

Level 15
Jul 26, 2019 5:22:51 AM

If you did that then the Sch C business was closed and a Partnership was opened thus 2 returns need to be completed ... and if you live in a community property state then you may have 2 Sch Cs to file (if you were married)  instead of the form 1065 ... I really recommend you see local professional guidance BEFORE making any changes to see what the options are and what is best for your situation.

Level 15
Jul 26, 2019 5:23:52 AM

If you did that then the Sch C business was closed and a Partnership was opened thus 2 returns need to be completed ... and if you live in a community property state then you may have 2 Sch Cs to file (if you were married) instead of the form 1065 ... I really recommend you see local professional guidance BEFORE making any changes to see what the options are and what is best for your situation.

New Member
Jan 26, 2020 9:11:04 AM

Changed to a 3 member LLC Feb. 2019 from sole proprietorship started in Oct. 2009. Have vehicles and equipment used prior to LLC formation.  How are these moved to LLC.

Level 15
Jan 26, 2020 10:00:33 AM

@Wireman 

 

The Sch C business needs to be closed (all assets converted to personal use)   and the Partnership opened ... the assets are moved to the partnership and become part of the basis of the person transferring it ... I highly recommend you seek local professional assistance for this first partnership return so you can get educated on what is needed and required ESPECIALLY if you choose to file as a calendar year business because a short year return will need to be filed.